Democratic infighting complicates Schumer response to banking crisis
Democratic infighting over a bipartisan bill that passed in 2018 to roll back part of the landmark Dodd-Frank Wall Street Reform Act is the latest political problem facing Sen. Majority Leader
Liberals led by Sen.
Both Tester and Manchin both face tough reelection races next year.
Warren and other progressive
"
"I haven't seen anyone else propose anything else that actually gets to the heart of the problem," she said.
Warren says she wants her proposal — which has 18 Senate Democratic co-sponsors — to reverse the 2018 rollback to get a vote, but Schumer has hinted that he only wants to bring bipartisan legislation to the floor that has a chance of passing.
"We need strong legislation and hopefully we can put something together that's bipartisan," Schumer told reporters last week.
On Wednesday, he said "there are currently many proposals that are on the table that are worth considering, but of course every one of them will need bipartisan support to pass."
Schumer voted against the 2018 rollback, but he doesn't appear inclined to put his vulnerable Democratic colleagues in a tough political position now.
Several of the
In addition to Manchin and Tester, Sens.
"We're still looking at the facts, I want to see the facts come in," said Manchin, one of 13
Manchin says the bank fees to cover insuring deposits above
"Ninety percent of West Virginians have less than
Manchin said depositors who want
Manchin said he's looking at a proposal to raise the
Sen.
"There were many provisions in that bill really important for small banks," she said.
"We were losing small community banks in
Stabenow challenged Democratic colleagues' claims that the 2018 Economic Growth, Regulatory Relief and Consumer Protection Act led to the collapse of
"From what I'm hearing from people that really study this, there are other things that caused" the bank failures, she said. "There are other things that caused it. If we're going to fix it, we should fix the right thing."
Stabenow said she's been told that
Sen.
"Let's find out what caused this first," he said.
Warren said the causes of the bank failures are clear enough.
"We know what happened," she said. "Surely, there's no one in America who thinks that easing the regulations made it less likely that this bank would load up on risk, boost short-term profits and then explode."
Other
"I think present events would seem to confirm that fairly forcefully," said Sen.
Schumer on Wednesday said raising the
"It will strengthen smaller banks and prevent depositors from putting their money into larger banks, but on the other hand there is a moral hazard argument, which could have significant impacts on our economy in the long run," he said.
Warren and Sen.
But that proposal is already running into Republican opposition.
"It's regulators on top of regulators. We've already got enough regulators, let's make sure they're doing the job," said Sen.
Sen.
"They have broad authority to apply whatever supervisory standards they want to apply," he said.
"There's this thing about whether the 2018 reforms to Dodd-Frank took away that authority. That's just a false argument. The 2018 legislation we did very clearly said that the Fed could put together whatever risk models it needed to put together for every bank of every size," he said.
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